Tesla joins S&P 500, consumer confidence, new home sales

A look at some of the key business events and economic indicators upcoming this week:

TESLA JOINS S&P 500

Electric car maker Tesla is set to become the biggest company ever to join the S&P 500 index.

S&P Dow Jones Indices will add the company Monday morning. Shares in Tesla, led by Elon Musk, have skyrocketed by around 700% this year, bringing the company’s market value to over $600 billion. The company, which has reported a profit for five straight quarters, will be one of the 10 most valuable companies in the index, along with Apple, Microsoft and Facebook.

EYE ON CONSUMERS

The Conference Board issues its latest index of U.S. consumer confidence Tuesday.

The index slipped in November to 96.1 to the lowest level since August as a surge in coronavirus cases caused a big drop in consumer expectations for income, business and labor market conditions. Consumer confidence is closely watched for signals it can provide of how willing households are to spend. Consumer spending accounts for 70% of economic activity in the U.S.

Consumer confidence, by month:

July 91.7

Aug. 86.3

Sept. 101.3

Oct. 101.4

Nov. 96.1

Dec. (est.) 97.0

Source: FactSet

HOUSING MARKET BELLWETHER

The Commerce Department serves up its November tally of new U.S. home sales Wednesday.

Sales of new homes accelerated this summer after the housing market stalled in the spring due to the pandemic. They have held steady this fall, reflecting strong demand for homes amid ultra-low mortgage rates and a pandemic-induced push to the suburbs. Economists project that sales fell last month to a seasonally adjusted annual rate of 987,000 units, down from 999,000 in October.

New home sales, seasonally adjusted annual rate, by month:

June 840,000

July 979,000

Aug. 1,001,000

Sept. 1,002,000

Oct. 999,000

Nov. (est.) 987,500

Source: FactSet